The drop in political advertising revenue in the non-election year of 2007 vs. 2006 was especially pronounced in the broadcasting unit, where it fell 22% to $212 million.

"In the fourth quarter, we faced a challenging advertising environment, tough comparisons, which included an extra week in 2006 and the relative absence of election-related advertising in broadcasting," Chairman, President, and Chief Executive Craig Dubow said.

For all 2007, Gannett earned $1.06 billion, or $4.52 per share, down from $1.16 billion, or $4.90 a share, in 2006. Revenue fell to $7.4 billion from $7.85 billion in 2006.

Gannett, like other media companies, has suffered a profits slide as advertising wanes, especially real estate and job ads that have slowed with the housing slump and decelerating economy. During the year, the company trimmed 43 jobs at USA TODAY, or almost 9% of the newsroom staff.

In December, Gannett announced plans to print a lifestyle magazine geared toward wealthy readers four times a year. It also announced a joint venture with Tribune Co. in October to expand a network of local entertainment websites.